Business
Giga Metals Sells Royalty on Turnagain Nickel-Cobalt Project
Vancouver, British Columbia--(Newsfile Corp. - July 11, 2018) - Giga Metals Corporation (TSX...
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[{"type":"text","content":"Giga Metals Sells Royalty on Turnagain Nickel-Cobalt ProjectVancouver, British Columbia--(Newsfile Corp. - July 11, 2018) - Giga Metals Corporation (TSXV: GIGA) (FSE: BRR2) (\"Giga Metals\" or \"the Company\") announced today that the Company has agreed to sell a 2% Net Smelter Return (\"NSR\") royalty on all future metal production from the Turnagain Nickel-Cobalt Project (the \"Turnagain Project\"), located in north central British Columbia, to Cobalt 27 Capital Corp. (\"Cobalt 27\") for US$1 million cash payment and US$9 million in common shares of Cobalt 27, at the deemed equity issue price of C$10.50 per share, for a total of 1,125,000 shares. (the \"NSR Agreement\").HIGHLIGHTSRoyalty sale highlights the potential of the Turnagain Project.Provides funds to advance one of the largest undeveloped sulphide nickel-cobalt projects in the world (in terms of total contained nickel) to the Pre-Feasibility stage.Turnagain Project is located in the politically stable jurisdiction of British Columbia, Canada.Turnagain ore is ideally suited to be refined into cobalt and Class 1 nickel required by battery manufacturers globally. Giga Metals aims to supply cobalt and nickel to the market by the time significant deficits have been projected due to the anticipated growth in electric vehicles and energy storage systems.The royalty is over both nickel and cobalt. \"Giga Metals is pleased to welcome Cobalt 27 as a royalty holder on the Turnagain Project. Cobalt 27's acquisition of a 2% NSR further highlights the Turnagain Project as one of the world's premier battery metals projects,\" said Mr. Jarvis. \"Turnagain's position as a potential supplier of critical battery metals has been confirmed by recent approaches from Asian battery manufacturers who are focused on obtaining access to cobalt and nickel concentrate from conflict-free jurisdictions. This transaction is transformational for the Company and underscores the value of the Turnagain project.\" The cash and marketable securities to be received by the Company from this transaction, combined with the cash on hand of approximately C$3.8 million, will provide the necessary capital to advance the Turnagain Project to the Pre-Feasibility stage and beyond. The Company has started a 9,600 metre drill program to test several high impact exploration targets, as well as to provide data to suppor...